Birth of a New Central Oregon Industry: EDCO's Role in the Creation of the Emerging Aviation Industry
Issue:
Central Oregon faced a major challenge, amidst declining primary wood products industry, in how to diversify its regional economy.
Solution:
The solution was to target new industries that fit with the area's workforce, natural amenities and attributes, offered higher than average wages, and a bright future in the marketplace.
EDCO's Role:
EDCO focused on the general aviation industry cluster, recruiting companies manufacturing aircraft and related components.
Success:
Deschutes County now has Oregon's largest concentration of aircraft/aviation companies and suppliers which employ nearly 1,200 people at wages that are higher than the average.
Story:
Most Central Oregon residents and business owners don't know that EDCO has quietly been working behind the scenes to build this industry cluster, one company at a time, into the significant economic engine it is today. That Central Oregon now has a growing and diverse aircraft/aviation industry is not random. It started with the recruitment of one small company and has grown systematically through consistent and effective economic development assistance.
It all started in the early 1990s with the recruitment of Lance Neibauer, founder and owner of a small turbine kit aircraft company, Lancair, from California. The aircraft were unique in that they were incredibly fast, sleek and made from composite carbon fiber, a new technology in the industry at the time. EDCO, Redmond Economic Development, Inc. (REDI), and community leaders helped convince Neibauer to relocate and build his new company in Redmond, beating out 200 other communities competing for the project. When Lancair opened its doors, it employ only about 20 people. Today, the company operates out of several locations near the Redmond Airport, employing about 70. But more important are the spin offs and vital connections this company helped create.
A few years after moving to the area, Neibauer embarked on an ambitious plan to build the first new certified (non-kit) turbine aircraft in the U.S. in 30 years. He and his management team looked across the country to find the best location for the new, state-of-the-art plant and eventually selected the Bend Airport for a new 140,000 sf facility in 1998. EDCO, working with the City of Bend, played a key role in retaining the company in Central Oregon. Over the next decade, the Bend plant grew to a peak employment of 715 people, and took on a new name, Columbia Aircraft Manufacturing.
Back in 2003, aircraft enthusiast and racer Rick Schrameck built a modified Lancair kit that set a world speed record in the class. A short time later, Schrameck and partner Dave Hice chose a small vacant building in Bend to engineer and build a larger, all-carbon aircraft that would be faster than any on the market. The principals were attracted to the region because of the technical talent with extensive experience in composites, aeronautics, and manufacturing from Lancair and Columbia.
Only 14 months after embarking on this ambitious project, they flew the Epic LT to the world's largest air show at Oshkosh, WI. With a great reception at Oshkosh and other shows and orders in hand, the company looked at communities across North America, and was convinced to build a new manufacturing facility at the Bend Airport, next to Columbia and in Alberta, Canada. EDCO played a key role in this project also, helping Epic Air with incentives, permitting, and logistics. A mere four years later, the company has five different models including two new jets in the VLJ (very light jet) category. Current employment of 125 could increase significantly in the next several years, contingent on financing.
In November 2007, Columbia was purchased by Wichita-based Cessna, the world's largest manufacturer of general aviation aircraft. EDCO played a role in this acquisition in providing incentives to encourage Cessna to keep the facility at the Bend Airport.
In the meantime, a number of suppliers to these and other manufacturers across the nation relocated to the area or grew their operations. EDCO played a lead role in recruiting of:
- Fuel Sale (now Aircraft Rubber, maker of aviation fuel tanks)
- Electronics International (supplier of electronic systems for aircraft)
- Mountain High Oxygen Systems (oxygen delivery systems for aircraft)
- ATI (wire harnesses) and
- several specialty machining suppliers, including APCO Swiss and MiniMachine.
With the growth and success of the industry overall, other companies have expanded in the region, including Leading Edge Aviation (helicopter overhauls, avionics), Precise Flight (aircraft lighting, electronics, air brakes), and Kawak (hydraulic systems and hover pumps for helicopters). Over this time, longstanding aerospace companies like PCC Schlosser (titanium castings for commercial aircraft) and Aircraft Rubber continued to expand for a combined employment of over 300 people.
Overall, the aviation industry directly employed over 1,000 people in Deschutes County in 2007 with a payroll over $35 million; an estimated additional 2,000 jobs throughout the region are indirectly supported by the sector. While companies within the sector can be found in each of Central Oregon's counties, the general aviation manufacturing industry has centered itself at the Bend Airport. An independent, statewide study recently released by the Oregon Department of Aviation quantified the total economic impact of the Bend Airport (both manufacturing and aviation-related activities, 2005 figures) to be $578.5 million annually, which was one of the largest economic impact figures for any airport of any size in Oregon. Compare this to Central Oregon's well developed tourism industry which generated an estimated total economic impact of $571 million in 2007.
The resulting cluster all got started with the relocation of one company. That is the power of targeted, consistent business recruitment and development efforts -- EDCO's mission for the last 28 years.